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![Page 1: 1 2012 Annual Alpha Meeting Dr. Dean Kashiwagi, PhD, MBA Performance Based Studies Research Group Del E. Webb School of Construction Program School of.](https://reader035.fdocuments.in/reader035/viewer/2022070412/56649e865503460f94b889a4/html5/thumbnails/1.jpg)
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2012 Annual Alpha 2012 Annual Alpha MeetingMeeting
Dr. Dean KashiwagiDr. Dean Kashiwagi, , PhD, MBAPhD, MBA
Performance Based Studies Research GroupPerformance Based Studies Research Group
Del E. Webb School of Construction ProgramDel E. Webb School of Construction Program
School of Sustainable Engineering & the Built School of Sustainable Engineering & the Built EnvironmentEnvironment
Ira A. Fulton Schools of EngineeringIra A. Fulton Schools of Engineering
Arizona State UniversityArizona State University
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Inside of a building
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Corroded deck
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• Worldwide as a leader in Best-Value Systems– Conducting research since 1994
– 1000+ Projects
– $4.4 Billion Services & Construction
– 5% Increase in Vendor profit
– 98% On-time, On-Budget, Customer satisfaction
– PMI, NIGP, IFMA, IPMA
– Tests in Netherlands, Botswana/Africa
– ASU – investments of over $100M due to BV
– WSCA Contract Gives Access to all states
PBSRG’s Research Results(Performance Based Studies Research Group)
© 2011, Arizona State University, PBSRG
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International Efforts
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Fulbright Scholarship-University of BotswanaPIPS tests
RMITTeaching IMTPBSRG platform
NetherlandsMost successful implementation of BVP outside of United StatesVisionaries: Scenter, Rikswaterstaat, NEVILargest test: $1B
BrunsfieldComplete Supply Chain implementation of best value PIPS
University of Alberta
United States-65 clientsWSCA, NASPO
CIB NetworkPBSRG NetworkPMForum Network
FinlandBVP is being proposed as a part of risk/project management
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Dutch Efforts
• Approx. 50 general presentations
• Approx 2000 attendees
• 2nd and 3rd reprint of Dutch book
• 4 papers published
• NEVI education and certification
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NEVI
• Third largest procurement organization in the world
• Represents both public and private procurement groups
• Educate and certify PIPS practitioners
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Rochester School District• University of Minnesota Contract
• City of Rochester
• Rochester School District
• Rochester School District Superintendent
• Rochester School Board
• Rochester School Teachers/Students
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Eliminating the ConfusionPla
nnin
g /
Pro
gra
mm
ing
Desi
gner
Contr
act
ing
Vendors
/ M
anufa
cture
rs
Use
rs
Insp
ect
ors
Sim
plic
ity/D
om
inant
Info
rmati
on
Technical Details
30K Foot Level
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W W W . P B S R G . C O M
Industry Structure (Reactive vs Proactive)Industry Structure (Reactive vs Proactive)
High
I. Price Based
II. Value Based
IV. Unstable Market
III. Negotiated-Bid
Specifications, standards and qualification based
Management, direction, and control
Decision making
Technical expertise on client’s side
Best Value (Performance and price measurements)
Quality control and quality assurance
Perceived Competition
Pe
rfo
rman
ce
Low
High
Owner selects vendor
Negotiates with vendor
Vendor performs
© 2011, Arizona State University, PBSRG
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W W W . P B S R G . C O M
High
Low
Perf
orm
an
ce
Owners
“The lowest possible quality that I want”
High
Low
Perf
orm
an
ce
Vendors
“The highest possible value that you will get”
Minimum
Maximum
What is causing all the What is causing all the confusion?confusion?
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W W W . P B S R G . C O M
Perf
orm
an
ce
High
Low
Ris
k
High
Low
Best Value vs. Low BidBest Value vs. Low Bid
Contractor 1Contractor 2Contractor 3Contractor 4
Contractor 1
Contractor 2
Contractor 3
Contractor 4Perf
orm
an
ce
High
Low
Ris
k
High
Low
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W W W . P B S R G . C O M
Industry performance and Industry performance and capabilitycapability
Highly Trained
MediumTrained
Vendor XCustomers
OutsourcingOwner
PartneringOwner
PriceBased
MinimalExperience
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W W W . P B S R G . C O M
ObjectivesObjectives
Get more business
Minimize risks for Neogard, client and contractor
Support Alpha contractors
Provide dominant documented performance
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W W W . P B S R G . C O M
Key itemsKey itemsBeing proactive and visionaryMinimizing transactions and risks during the projectCustomer satisfaction policy vs. Alpha program requirementsPre-planning
Pre-award meeting Risk Management Plan Weekly Risk Report
Create “win-win” DISD effortsNeogard Risk Management Program
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W W W . P B S R G . C O M
Current Alpha ContractorsCurrent Alpha Contractors
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W W W . P B S R G . C O M
Best Value Alpha ProjectBest Value Alpha Project
Alpha Contractor
Alpha Contractor
Pre-
cons
truc
tion
R
isk
Mee
ting
Pre-
cons
truc
tion
R
isk
Mee
ting
Alp
ha C
ontr
acto
r N
otif
ied
of P
AA
lpha
Con
trac
tor
Not
ifie
d of
PA
Roof InspectionRoof Inspection
Warranty signedWarranty signed
Roof Inspection (Once every two years)
Roof Inspection (Once every two years)
Follow up Call (Yearly)
Follow up Call (Yearly)
Aw
arde
d Pr
ojec
tA
war
ded
Proj
ect
NTPBid
Close Out
Rep
eat
Pro
cess
Com
ple
te
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DISDB
on
d P
M /
Pla
nn
ing
/
Pro
gra
mm
ing
Desig
ner
Con
tracti
ng
Gen
era
l C
on
tracto
rs
Alp
ha C
on
tracto
rU
sers
Insp
ecto
rs
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Using Common Sense
31
Bidding Award Start of Project End of Project
Inspection
Whatr is inWhat is outRisksRisk MitigationTrack deviations
Value determined by BUR/MB
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Past Alpha Projects
• WRR creates accountability and tracks cost changes and delays
32
CriteriaKansas Marine
Ft Rucker
Original Project Cost 1,184,515 885,400
Total Close-out Cost 1,209,000 885,400
Total % Over Budget 2% 0%
% over budget due to Owner 0% 0%
% over budget due to Contractor 0% 0%
% over budget due to Unforeseen 2% 0%
Total % Delayed 391% 119%
% delayed due to Owner 171% 119%
% delayed due to Contractor 0% 0%
% delayed due to Unforeseen 220% 0%
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W W W . P B S R G . C O M
Pre-construction Risk MeetingPre-construction Risk Meeting Not the same as pre-construction meeting
Meet on project-site
Following should attend the meeting Alpha Contractor Owner representative Neogard representative Any other critical entity involved with the project
Identify all the risks and a plan to mitigate them for all parties, create a Risk Management Plan (RMP)
Create milestone schedule and track percentages (from detailed schedule)
Initiate Weekly Risk Report
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W W W . P B S R G . C O M
Pre-construction Risk MeetingPre-construction Risk Meeting
Clearly identify “what is in” and “what is out”
Price what is specified
Any additional items that need to be added / deleted and was not included in the specifications, immediately issue a change order or ask for additional funds
Get approval from the client at the meeting
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W W W . P B S R G . C O M
Risk Management PlanRisk Management Plan
Identify major risks that the contractor does not control
Plan to manage and minimize the risk that they do not control
Living document in Weekly Risk Report
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W W W . P B S R G . C O M
Why Risk Management Plan?Why Risk Management Plan?
Makes everything transparent
Brings accountability
Protects Alpha contractor
Eliminates false expectations by owner
No surprises during the project
Creates “win-win” situation
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W W W . P B S R G . C O M
Best Value Alpha ProjectBest Value Alpha Project
Alpha Contractor
Alpha Contractor
Pre-
cons
truc
tion
R
isk
Mee
ting
Pre-
cons
truc
tion
R
isk
Mee
ting
Alp
ha C
ontr
acto
r N
otif
ied
of P
AA
lpha
Con
trac
tor
Not
ifie
d of
PA
Roof InspectionRoof Inspection
Warranty signedWarranty signed
Roof Inspection (Once every two years)
Roof Inspection (Once every two years)
Follow up Call (Yearly)
Follow up Call (Yearly)
Aw
arde
d Pr
ojec
tA
war
ded
Proj
ect
NTPBid
Close Out
Rep
eat
Pro
cess
Com
ple
te
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W W W . P B S R G . C O M
DeliverablesDeliverables
Detailed Technical Schedule
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W W W . P B S R G . C O M
DeliverablesDeliverables
Detailed Technical Schedule
Interface with others who vendor DNC
Interface with others who vendor DNC
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W W W . P B S R G . C O M
DeliverablesDeliverables
Detailed Technical Schedule
Interface with others who vendor DNC
Interface with others who vendor DNC
RMP
RMP
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W W W . P B S R G . C O M
Detailed Schedule, Interfaces with DNC parties, Detailed Schedule, Interfaces with DNC parties, RMP, PMRMP, PM
Detailed Technical Schedule
Interface with others who vendor DNC
Interface with others who vendor DNC
RMP
RMP Performance Measurements
Performance Measurements
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W W W . P B S R G . C O M
Weekly Risk ReportWeekly Risk Report
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W W W . P B S R G . C O M
Weekly Risk ReportWeekly Risk Report
43
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W W W . P B S R G . C O M
Weekly Risk ReportWeekly Risk Report
Risks are all issues that could affect budget, schedule or owner satisfaction
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W W W . P B S R G . C O M
Weekly Risk ReportWeekly Risk Report
Track Change Orders
Risk Management Plan
45
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W W W . P B S R G . C O M
Weekly Risk ReportWeekly Risk Report
All numbers calculated automatically, no need to update
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W W W . P B S R G . C O M
Weekly Risk ReportWeekly Risk Report
Project Contact Information
47
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W W W . P B S R G . C O M
Customer Satisfaction PolicyCustomer Satisfaction Policy
48
Alpha Contractor
Alpha Contractor
Follow-up call to client*
Follow-up call to client*
YesYes
Problem?(Leak, open
blisters)
Problem?(Leak, open
blisters)
Repair roof within 15 days of notice
Repair roof within 15 days of notice
Contact the Applicator
Contact the Applicator
Roof Installation
Roof Installation
NoNoNext Job
Next Job
*Client can change the satisfaction rating anytime putting the Alpha Contractor under the risk of elimination from the program
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W W W . P B S R G . C O M
Customer Satisfaction vs. Alpha ProgramCustomer Satisfaction vs. Alpha Program
Customer SatisfactionAlpha Program
Roof inspections once every 2 years
Annually submit to Arizona State University (PBSRG) all SPF roofs installed over 5,000 SF
Attend educational presentation given by Arizona State University (PBSRG) (1/year)
98% of roofs do not currently leak
98% of customers satisfied
Maintain “Good Financial Standing” with Neogard
49
Roof InstallRoof Install
Client Follow-up
Client Follow-up
Problem?Problem?
YesYesNoNo
Repeat
Pro
cess
Dissatisfied Client
Dissatisfied Client
Fix roof within 15 days
Fix roof within 15 days
Eliminate from program until roof
fixed / client satisfied
Eliminate from program until roof
fixed / client satisfied
98% of customers satisfied
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W W W . P B S R G . C O M
Alpha Inspections - 2012Alpha Inspections - 2012 Cook Coatings – March 2012
Phoenix Coatings – March 2012
ProCo – May 2012
Tillotson – June 2012
Washington – July 2012
Longhorn – July 2012
Brazos Industries – July 2012
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W W W . P B S R G . C O M
Alpha Annual ListAlpha Annual ListPlease submit the annual roof list, if not already done, to
Dhaval Gajjar at [email protected] meeting the following criteria All newly installed SPF roofs over 5,000 SF Installed in 2011
Template for roof list will be sent
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DISD Efforts
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W W W . P B S R G . C O M
DISD Risk MinimizationDISD Risk Minimization
Inspect DISD roofs every yearDISD Weekly Risk Report sent every weekFix roofs that have over 1% blisters, leaking or
GT 1 SF of blisters within 15 daysMike Smith can notify PBSRG anytime for
dissatisfaction of not fixing the roofAn Alpha contractor can be removed from the
Alpha Program
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W W W . P B S R G . C O M
DISD WRR – Risky ProjectsDISD WRR – Risky Projects
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Sent to DISD h every week
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W W W . P B S R G . C O M
2011 DISD Projects2011 DISD Projects
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No Job Name Contractor Job Area
1 Thomas Jefferson HS Alpha Contracting 145,850
2 Sunset High School Alpha Contracting 44,580
3 Stonewall Jackson Elementary School Alpha Contracting 22,242
4 Alamo Pool Alpha Contracting 13,030
5 Pleasant Grove Pool Alpha Contracting 13,030
6 Lakewood Elementary - Modular Building Alpha Contracting 5,688
7 Harry Stone Brazos Urethane 95,000
8 D.A. Hulcy MS Brazos Urethane 62,050
9 Whitney M. Young Jr. Elementary Brazos Urethane 59,000
10 JW Ray Brazos Urethane 54,500
11 David W Carter Brazos Urethane 38,000
12 James B. Bonham - BP 45ª Brazos Urethane 17,184
13 B.F. Darrell Male Academy Phoenix 1 55,600
14 Nancy Moseley Phoenix 1 22,300
15 Seagoville Alt.Edu.building Phoenix 1 2,000
No ContractorTotal Jobs
Total Job Area
1 Alpha Contractor 6 244,420
2 Brazos Urethane 6 325,734
3 Phoenix1 3 79,900
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W W W . P B S R G . C O M
DISD WRR – Risky Project StatusDISD WRR – Risky Project Status
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Job ID Job Name Job AreaOriginal Install
DateEstimated Repair date
1 Hawthorne ES 45,200 7/30/2005 End of February, 2012
2 Spruce HS 85,000 8/26/2005 End of February, 2012
3 Houston ES 23,000 7/22/2005 Repair in-process, open blisters fixed
4 Peabody ES 32,600 8/1/2005 Have a renovation contract, will repair at same time
5 Hillcrest HS 108,000 6/10/2005 Repair in-process, open blisters fixed
6 Hall ES 68,000 7/26/2005 Have a renovation contract, will repair at same time
7 Seagoville HS 57,300 8/3/2005 End of February, 2012
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W W W . P B S R G . C O M
DISD WRR - ContractorDISD WRR - Contractor
Contractor Total # of
roofsAverage job area
(SF) Total job area
(SF) Average age (Yr)
Total blisters (SF)
Total percent of roof area blistered
Total repairs (SF)
Total percent of roof area repaired
Alpha Contracting 48 41,165 1,975,918 5 2,124 0.11% 2,426 0.12%
Dallas Urethane 2 96,000 192,000 6 0 0.00% 0 0.00%
Longhorn Enterprises
3 36,167 108,500 6 51 0.05% 180 0.17%
Phoenix 1 25 35,369 884,215 11 1,126 0.12% 6,349 0.72%
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W W W . P B S R G . C O M
DISD WRR – Overall P-lineDISD WRR – Overall P-line
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No Criteria Unit 2011
1 Oldest job surveyed Years 25
2 Average age of jobs surveyed Years 7
3Age sum of all projects inspected (doesn't leak, total years combined)
Years 558
4 Average total repairs on each roof SF 110
5 % of total roof area repaired % 0.29%
6 Average blister area on roofs SF 52
7 % of total roof area currently blistered % 0.14%
8 Total existing blisters SF 4,117
9 Average job area (of jobs surveyed and inspected) SF 40,630
10 Total job area (of job surveyed and inspected) SF 3,209,733
11 Total number of jobs inspected # 79
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W W W . P B S R G . C O M
Alpha Contractors – Blisters vs RepairsAlpha Contractors – Blisters vs Repairs
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No Alpha Contractors Total SF Inspected
Total SF Blisters % Blisters Total SF
Repairs % Repairs
1 Alpha Contracting 1,662,785 1,585 0.11% 2,155 0.13%
2 Brazos Industries 1,194,706 240 0.04% 0 0.00%
3 CAW 2,321,117 575 0.07% 0 0.00%
4 Cook Coatings 3,084,007 290 0.01% 930 0.03%
5 Dallas Urethane 2,010,212 73 0.01% 0 0.00%
6 IRC 4,395,540 368 0.04% 0 0.00%
7 Longhorn 449,758 196 0.04% 2,103 0.47%
8 Phoenix Coatings 1,272,080 47 0.01% 0 0.00%
9 Phoenix1 992,210 1,126 0.12% 6,349 0.72%
10 Pro Co. 281,931 233 0.07% 0 0.00%
11 Progressive Roofing 1,151,514 179 0.01% 0 0.00%
12 Tillotson 413,574 95 0.03% 0 0.00%
13 Washington 836,031 484 0.08% 0 0.00%
14 Wattle & Daub 993,953 30 0.00% 0 0.00%
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Neogard Warranty Risk Management Program
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W W W . P B S R G . C O M
Neogard Warranty ProgramNeogard Warranty Program
QC & Measurement of:•System Performance•Contractor Performance•Follow up for issues•Maintain Customer Satisfaction
NeogardNeogard
OwnerOwner
PBSRGPBSRGWarrantyWarranty
Performance InformationProblems
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W W W . P B S R G . C O M
Neogard effortsNeogard efforts Client satisfaction ratings for all projects (roofing, waterproofing, wall
coatings, flooring) Identify risky jobs (leaks, dissatisfied customer) Annual checks on all projects under warranty
Performance line all applicators Differentiates low-performing and high-performing vendors Identify risky applicators
Overall performance line Only manufacturer with documented performance Use for marketing Neogard products
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W W W . P B S R G . C O M
Overall Neogard P-lineOverall Neogard P-line
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W W W . P B S R G . C O M
Neogard MeasurementsNeogard Measurements
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Neogard Segment P-lines
Risky Applicators
Risky Projects
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W W W . P B S R G . C O M
Example Applicator P-lineExample Applicator P-line
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W W W . P B S R G . C O M 66
Comments / QuestionsComments / Questions
W W W . P B S R G . C O M